Realty Deals Bring Rs 23,000 cr During January-March

Hyderabad, India (PressExposure) April 25, 2008 -- Slowdown in the real estate market notwithstanding, land deals in India are thriving. According to a recent study, the total value of such deals, in the first three months of 2008, have touched around Rs 23,000 crore, while another Rs 10,000-crore worth deals are in the pipeline.

A study by top brokerage JP Morgan shows that Delhi-based developer BPTPâs Rs 5,000- crore land deal in Noida was the largest deal in the January-March period, while the Mumbai Metropolitan Region Development Authorityâs land auctions in Bandra Kurla Complex had fetched around Rs 4,000 crore.

The deals in the pipeline include the Indian Railwaysâ 50 acres worth Rs 10,000 crore that is scheduled to be auctioned later. Also, a Rs 115-crore deal between the Balaji group and Prestige group is likely to be completed soon.

In Mumbai, a Rs 250-crore deal by Hindustan Composites is in the final stage, in which developers such as DLF, Kalpataru and K Raheja Corp are the lead bidders. The JP Morgan report comes at a time when it is expected that a tightening in global liquidity and a slowdown in the economy, could put the brakes on the real estate sector which witnessed a sharp rising growth in the past two years.

As a reflection of this slowdown, developersâ plans including malls, complexes and residential projects are all being kept under wraps. Property prices and rentals have been falling which was also seen in the loss of investor interest and an erosion in the market capitalization of large listed players such as DLF and Unitech. The slowdown is also aided by the fall in stock markets as there is now a lack of capital among investors to invest in real estate projects.

Industry officials said that given the limited avenues of fund raising, a number of developers raised funds through instruments such as primary equity offerings and through foreign currency convertible bonds.

All leading developers have also scaled up their development plans as well as made fresh land reserve acquisitions. âThe fundamentals of Indian real estate are very strong. More and more global funds are entering India,â said real estate consultancy Jones Lang LaSalle Meghraj chairman and country head Anuj Puri...

At Maa Properties, we have in-depth knowledge of property markets, extensive experience, specialized skills and resources necessary to provide an entire range of reliable and responsive property management services. No matter how far away you are currently located, our online services enable you to take charge of things and efficiently handle all property-related transactions back home.

We would like to take the opportunity to welcome all the community members living world wide to our real estate portal.(NRI)